DLF profit holds despite 42% revenue drop as other income props up quarter
Margins improved for a third straight quarter, but the year-on-year decline was wide and reported profit remained heavily dependent on other income.
Filed 13 May 2026, 20:29 IST · after market close · DLF Ltd (DLF)
Key takeaways
- Consolidated net profit fell only -1.06% YoY despite a -42.00% revenue decline, helped by other income equal to 70.98% of pre-tax profit and a -7.83% tax rate.
- Operating margin recovered 3.34 percentage points QoQ as expenses fell -13.93%, faster than revenue at -10.20%, but remained 8.63 percentage points below Q4FY25.
- The stock rose 1.58% in the first session, a smaller move than its 2.22% median absolute reaction after the past eight results.
Price around the results
Revenue fell sharply, but profit stayed near last year
Consolidated revenue declined -42.00% YoY, while operating profit fell faster at -58.00%, reflecting the weaker operating base. Other income increased 32.34% and interest expense fell -80.58%, cushioning the effect on pre-tax profit. Net profit was nearly unchanged because the reported tax rate moved from 12.39% to -7.83%, while other income contributed 70.98% of pre-tax profit.
DLF’s margin recovery continued, but the yearly gap remains
Operating margin widened 3.34 percentage points QoQ because expenses contracted -13.93%, more than the -10.20% decline in revenue. This was the third consecutive quarterly improvement from the 13.40% level in Q1FY26, taking margin to 22.64%. Year on year, however, costs fell only -34.72% against the -42.00% revenue decline, leaving margin 8.63 percentage points below Q4FY25.
Management points to annuity occupancy and a large launch pipeline
Management said office occupancy was 95% and retail occupancy was 97% across its annuity portfolio in the quarter. The company said new sales bookings were in line with guidance and that its medium-term pipeline represents about 25 msf with estimated sales potential of Rs 60,215 cr. Management also said launches planned from FY25 onwards comprise about 37 msf with estimated sales potential of Rs 1,14,500 cr, across super-luxury, luxury, premium and commercial segments. The presentation said the group remains focused on cash-flow generation and higher margin delivery.
The initial market move was modest versus DLF’s result history
DLF gained 1.58% in the first session after the results, with trading volume at 1.78 times the reference level. That reaction was smaller than the stock’s 2.22% median absolute move after its past eight results, when it rose five times and fell three times. The stock was up 2.40% after five sessions and 7.07% after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,814 cr | ₹2,020 cr | -10.20% | -42.00% |
| Other income | ₹835 cr | ₹873 cr | -4.30% | +32.34% |
| Expenses | ₹1,403 cr | ₹1,630 cr | -13.93% | -34.72% |
| Operating profit | ₹411 cr | ₹390 cr | +5.36% | -58.00% |
| Operating margin (%) | 22.64% | 19.30% | — | — |
| Interest | ₹21 cr | ₹36 cr | -41.88% | -80.58% |
| Depreciation | ₹48 cr | ₹30 cr | +60.03% | +30.72% |
| Profit before tax | ₹1,176 cr | ₹1,196 cr | -1.63% | -19.61% |
| Tax | ₹-92 cr | ₹-7 cr | -1141.37% | — |
| Net profit | ₹1,269 cr | ₹1,203 cr | +5.42% | -1.06% |
| EPS (₹) | ₹5.12 | ₹4.86 | +5.35% | -1.16% |
Operating margin of 22.64% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.58% | +0.40% |
| Next session | -1.29% | — |
| 5 sessions | +2.40% | +1.37% |
| 15 sessions | +0.62% | — |
| 30 sessions | +7.07% | — |
Volume on the results session was 1.78× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- DLF reported occupancy of 95% across its office annuity portfolio and 97% across its retail annuity portfolio.
Guidance & outlook
- DLF says its future performance is expected to enhance the Group's growth and financial position.
- The Group's focus remains on strong cash flow generation and higher margin delivery.
- DLF states that new sales bookings were in line with guidance.
- DLF describes its medium-term launch pipeline as a healthy pipeline with sales potential of approximately ₹60,000 crore or more.
Expansion
- DLF's planned launches from FY25 onwards comprise approximately 37 msf with estimated sales potential of ₹1,14,500 crore.
- DLF plans medium-term launches of approximately 25 msf with estimated sales potential of ₹60,215 crore.
New products
- DLF's launch pipeline covers super-luxury, luxury, premium and commercial project segments.
Competition
- DLF describes its annuity platform as one of the largest organically grown platforms.
What to watch
- Whether consolidated operating margin holds above 22.64%.
- Whether other income’s contribution stays below or above 70.98% of pre-tax profit.
- Whether office and retail annuity occupancy remain at 95% and 97%, respectively.